forex hangama

Forex Risk Awarness

2010-03-17T09:38:00.000-07:00

RISK AWARENESS

FOREX trading is undoubtedly risky. Anyone contemplating FOREX trading should understand the following:

THE RISK OF LOSS IN TRADING FOREX CAN BE SUBSTANTIAL. ONE SHOULD THEREFORE, CAREFULLY CONSIDER WHETHER SUCH TRADING IS SUITABLE IN LIGHT OF THEIR FINANCIAL CONDITION. FOREX TRADING MAY NOT SUITABLE FOR EVERY INDIVIDUAL. IT IS ADVISABLE TO ALWAYS TRADE WITH RISK CAPITAL, “MONEY THAT ONE CAN AFFORD TO LOSE”. LEVERAGE CAN MAGNIFY BOTH GAINS AND LOSSES.

If one is trading with high leverage, then even a small move against your position could result in a large loss, including the loss of the entire initial deposit or margin fund. Keep in mind that the market can always move against. No one can predict prices with certainty.

Also, the trading system could break down. If you are using an Internet-based or other electronic system to place trades, some part of the system could fail. In case of a system failure, for a certain period you may not be able to enter new orders, execute existing orders, or modify or cancel orders that were previously entered. A system failure could also result in loss of orders or order priority.

Forex Rates in Karachi.

2010-03-17T09:33:00.000-07:00

FOREX RATES Pakistan Open Market Forex Rates Updated at : 17/3/2010 8:57 PM (PST)
Currency	Buying	Selling
Australian Dollar	77.00	78.00
Canadian Dollar	82.60	83.60
China Yuan	12.00	13.50
Euro	116.10	117.50
Japanese Yen	0.9250	0.9360
Saudi Riyal	22.43	22.65
U.A.E Dirham	22.95	23.20
UK Pound Sterling	128.00	129.30
US Dollar	84.45	84.75

UPDATE: EUR/JPY Technical Analysis - Monday 18 January 2010

2010-01-18T09:52:00.000-08:00

EUR/JPY Technical Analysis
by minibahn

Eerily quiet...

EUR/JPY Technical Analysis - Monday 18 January 2010

2010-01-18T01:01:00.000-08:00

EUR/JPY Technical Analysis
by minibahn

RTFX Tradertip Nostromo Scenarios

Daily:
Elliott : extension wave down 129.7139. Market should not go lower than 129.6951. After this move down it should go up to 131.5035 - 131.9020 area.

Weekly:
Elliott : flat correction down 129.2227. Market should not go lower than 130.4540 - 129.1457. After this move down it should go up to 132.4895 - 133.2167 area.

Monthly:
Elliott : flat correction down 129.9450. If market stays below 134.0565 a fall to 129.1927 is expected. If market breaks the point 136.2407 it could reach the sky.

minibahn Mafia:
Daily bias is short. EUR/JPY has gone as low as 130.07. It's plausible that the flat correction down has NOT YET completed. There's a confluence of pivots below: DS2 128.97, WS1 129.10 and MoS1 128.99 that attract.

EUR-JPY higher, new daily high close above DR1 133.44.

2010-01-13T22:38:00.000-08:00

EUR-JPY higher, new daily high close above DR1 133.44.

RTFX TraderTip >> EUR-JPY Analysis – Tuesday 12 January 2010

2010-01-11T23:37:00.000-08:00

Click HERE to jump to the Analysis posted on minibahnFX.com

Daily Market Comments - Tuesday 22 December 2009

2009-12-21T18:10:00.000-08:00

http://www.realtimeforex.fr/forums/forex-analysis-news/39417-daily-market-comments-tuesday-22-december-2009-a.html

RTFX TraderTip >> EUR-JPY Analysis - Tuesday 22 December 2009

2009-12-21T18:07:00.000-08:00

http://www.realtimeforex.fr/forums/forex-analysis-news/39432-rtfx-tradertip-eur-jpy-analysis-tuesday-22-december-2009-a.html

RTFX TraderTip >> USD-JPY Analysis - Tuesday 22 December 2009

2009-12-21T18:04:00.000-08:00

http://www.realtimeforex.fr/forums/forex-analysis-news/39436-rtfx-tradertip-usd-jpy-analysis-tuesday-22-december-2009-a.html

RTFX TraderTip >> GBP-JPY Analysis - Tuesday 22 December 2009

2009-12-21T18:03:00.000-08:00

http://www.realtimeforex.fr/forums/forex-analysis-news/39425-rtfx-tradertip-gbp-jpy-analysis-tuesday-22-december-2009-a.html

Fixed Ratio Money Management

2009-12-18T23:22:00.000-08:00

It's been a while since I last blogged about Money Management, what many consider to be the most important yet overlooked subject in trading. As one of the three (3) pillars of trading success (the other two being Mind and Method), I therefore feel that I have an obligation to share more of my thoughts on the matter.

A personal favourite money management system of mine is outlined in great detail in Ryan Jones' book The Trading Game: Playing by the Numbers to Make Millions. In this book, he teaches 'Fixed Ratio' money management (what I will refer to as FRMM). Some FX traders assert that this is the best money management system for forex traders.

An important bit to note, Mr. Jones argues that FRMM will help any trading system as long as it is profitable over time. So, I would argue that trading using price action and support & resistance using pivot points (Mafia or otherwise) fits this requirement nicely. :-)

So, let's start putting FRMM into practice:

1. To show that this would work even for you small retail traders, let's assume that we begin trading with USD100 in our account.

2. Then, we need to pick how many pips profit we need to achieve before we start trading with more lots. Let's target an "easy" 200 pips a month or 10 pips/day for 20 trading days in a month.

3. Now we're ready to launch our trading terminal and start... just about. Before we start trading, we need to determine our trade size. Using 10:1 leverage, given that we have USD100 in our account, we therefore should be trading 1,000 units or 1 micro lot (USD0.10/pip) per trade. So, our daily target is 10 pips or USD1.00 per day . We will only increase to 2 micro lots after gaining 200 pips. After that, when we gain another 200 pips, we trade 3 micro lots... so on and so forth.

4. Should the broker give is 100:1 leverage, our margin requirement is simply 1% per micro lot traded, which comes up to USD10.

5. So, here's how FRMM would work:

Month 1: USD100 + (200 pips x USD0.10/pip = USD20 ) Total: USD120

We start with USD100 in our trading account and after 1 month of trading we gain 200 pips, and now have USD120 in our trading account. We are now at the next level. If our account balance has not reached USD120, we still trade 1 micro lot.

Month 2: USD120 + (200 pips x USD0.20/pip = USD40) Total: USD160

We now start month two with USD120 and gain 200 pips profit trading 2 micro lots. We now have USD160 in our trading account and are now on the next level. If the account has not reached USD160 we remain trading 2 micro lots.

Month 3: USD160 + (200 pips x USD0.30/pip = USD60) Total: USD220

We now start month three with USD160 and gain 200 pips profit trading 3 micro lots. We now have USD220 in our trading account and are now on the next level. If the account has not reached USD220 we remain trading 3 micro lots.

Month 4: USD220 + (200 pips x USD0.40/pip = USD80) Total: USD300

You now start month four with USD220 and gain 200 pips profit trading 4 micro lots. We now have USD300 in our trading account and are now on the next level. If the account has not reached USD300 we remain trading 4 micro lots.

Month 5: USD300 + (200 pips x USD0.50/pip = USD100) Total: USD400

You now start month four with USD300 and gain 200 pips profit trading 5 micro lots. We now have USD400 in our trading account and are now on the next level. If the account has not reached USD400 we remain trading 5 micro lots.

RESULTS:

Month 6: USD400 + (200 pips x USD0.60/pip = USD120) Total: USD520
Month 7: USD520 + (200 pips x USD0.70/pip = USD140) Total: USD660
Month 8: USD660 + (200 pips x USD0.80/pip = USD160) Total: USD820
Month 9: USD820 + (200 pips x USD0.90/pip = USD180) Total: USD1,000
Month 10: USD1,000 + (200 pips x USD1.00/pip = USD200) Total: USD1,200

What is incredible is that by just gaining an average of 10 pips a day, FRMM grows our account size asymmetrically. We've just turned USD100 turned into USD1,200 in 10 months! Yahoo! We don't need to bank mega pips daily, though that would be more than welcome. 10 measly pips a day on average and we're good. We can play around with the formula, to be more conservative than the above example. We can add more pips profit in the formula. For example, we can choose to increase the number of lots traded after gaining 400 pips instead of 200 pips. This would naturally mean slower growth.

Now, how realistic is 10 pips a day? In the above example, we start of trading 1 micro lot, i.e. USD0.10/pip with a daily target of 10 pips or USD1.00. Let's fix our risk per trade at 1% of equity, i.e. a stop-loss of 10 pips which works out to be USD0.10/pip x 10 pips = USD1.00. Risking 1% of equity per trade, let's target a nice reward:risk of 2:1 on every trade, i.e. we risk 10 pips for a gain of 20 pips.

Let's see how we perform if we do 10 trades a day as follows:

#1 - Lost: -10
#2 - Lost: -10
#3 - Lost: -10
#4 - Win: +20
#5 - Win: +20
#6 - Lost: -10
#7 - Lost: -10
#8 - Win: +20
#9 - Lost: -10
#10 - Win: +20

Total = +20 pips

We can see that we only need to win 4 out of 10 trades (40% win rate) and we will be up 20 pips for the day. Nice!

If you really suck at trading and suffer 10 straight losses however, you will be down 100 pips or USD10.00. You will need to turn off your trading platform and re-think your trading method/strategy. Remember, FRMM will only help trading systems that are profitable over time.

So, do try setting up an FRMM plan before you start your next live trade!

EUR/JPY Analysis - Monday 21 December 2009

2009-12-18T20:10:00.000-08:00

The daily analysis indicates a flat correction up to 130.78, the weekly points to a crucial reversal point at 130.71, whereas the monthly says a flat correction down to 127.02 with a bearish potential for a fall to 125.78.

So, it's a case of "up before going down".

The EJ H1 Mafia chart below confirms this scenario with EJ having bounced off WS1. So, we're looking at EJ going up to the convergence of MPP and WPP circa 130.75-131.17.

The EJ H4 chart shows that a corrective move to MPP & WPP would involve violating the downward trendline. This is no biggie in my opinion for EJ is still ranging within two major bullish and bearish trend lines. The bears case is affirmed also by the volatility pivot which sits nicely in between the MPP and WPP.

Looking forward to another great week trading!

RTFX TraderTip >> USD-JPY Analysis - Monday 21 December 2009

2009-12-18T20:06:00.001-08:00

http://www.realtimeforex.fr/forums/forex-analysis-news/39229-rtfx-tradertip-usd-jpy-analysis-monday-21-december-2009-a.html

RTFX TraderTip >> GBP-JPY Analysis - Monday 21 December 2009

2009-12-18T20:06:00.000-08:00

http://www.realtimeforex.fr/forums/forex-analysis-news/39218-rtfx-tradertip-gbp-jpy-analysis-monday-21-december-2009-a.html

RTFX Daily Market Comments - Monday 21 December 2009

2009-12-18T20:04:00.000-08:00

EUR-USD	Current fall is near an end of wave around 1.4260 zone, a rally should then procede to above 1.4411. Fall below 1.4186 would cancel this scenario.

USD-CHF	While above 1.0409 - 1.0379 zone a corrective upmove could test 1.0463 or 1.0488. After which it should resume its downtrend.

GBP-USD	One more dip to 1.6097 - 1.6046 is likely followed by a grind higher to 1.6196 - 1.6243. After which it can resume its downtrend.

USD-JPY	It should try higher up to 90.6275 - 91.1913. Entry point 90.0637 or 89.6375. After this rise, a correction is expected.

USD-CAD	It looks more likely that it would rise to 1.0715 from 1.0645 or 1.0618. After which a downside move is expected.

NZD-USD	It should try higher up to 0.7122 - 0.7140. Entry point 0.7103 or 0.7087. After this rise, a correction is expected.

AUD-USD	It should try higher up to 0.8910 - 0.8942. Entry point 0.8877 or 0.8859. After this rise, a correction is expected.

EUR-JPY	It should test 130.9890 area after which a sell off down to 127.9983 or extended to 126.4907 area is expected.

EUR-CHF	Current fall is near an end of wave around 1.4897 zone, a rally should then procede to above 1.5015. Fall below 1.4844 would cancel this scenario.

EUR-GBP	It may attempt a test higher to 0.8890 - 0.8900 after which weakness may set it to a drift down to below 0.8860 limit.

EUR-CAD	One more dip to 1.5258 - 1.5212 is likely followed by a grind higher to 1.5339 - 1.5375. After which it can resume its downtrend.

EUR-NZD	While below 2.0215 - 2.0245 it might drop to 2.0102 or 2.0041.

EUR-AUD	It looks more likely that it would rise to 1.6198 - 1.6301 from 1.6090 or 1.6038. After which a downside move is expected.

GBP-CHF	Current fall is near an end of wave around 1.6770 zone, a rally should then procede to above 1.6920. Fall below 1.6704 would cancel this scenario.

GBP-JPY	It may attempt a test higher to 146.2010 - 147.0173 after which weakness may set it to a drift down to 144.1973 limit.

GBP-CAD	It is likely to fall towards 1.7173 - 1.7117 as its corrective rally could falter in 1.7276 - 1.7322 area. Stop above 1.7436 zone.

GBP-AUD	It looks more likely that it would rise to 1.8255 - 1.8387 from 1.8113 or 1.8047. After which a downside move is expected.

CAD-JPY	It looks set for gains to 85.5227. Supports at 83.9160 and 83.5267. A break of 82.3093 will damage this bullish structure.

NZD-JPY	It should test 65.3790 area after which a sell off down to 63.3360 or extended to 62.4450 area is expected.

AUD-JPY	It should test 82.1810 area after which a sell off down to 79.1923 or extended to 77.9147 area is expected.

XAG-USD	It should test 17.3470 area after which a sell off down to 17.1140 or extended to 16.9620 area is expected.

XAU-USD	It should test 1121.8340 area after which a sell off down to 1100.0106 or extended to 1088.1193 area is expected.

RTFX Weekly Market Comments - Monday 21 December 2009

2009-12-18T20:01:00.000-08:00

EUR-USD	It looks set to visit further lower territory down to around 1.4298 - 1.4169. Its corrective attempts should fail ahead of 1.4298 - 1.4593. Stop loss above 1.4851 zone.

USD-CHF	While below 1.0469 - 1.0527 it is more likely to fall further towards 1.0362 or 1.0314. Premature rise above 1.0527 could see it rising above 1.0624 zone.

GBP-USD	Market should not go lower than 1.6097 - 1.5992. After this move down it should go up to 1.6277 - 1.6351 area.

USD-JPY	Corrective dips should ideally halt near 89.3355 or 88.8087 for one more thrust upwards towards 90.6275 - 91.3927 area or 92.4463 in extention. Fall below 87.2783 puts it back on a downward path.

USD-CAD	While below 1.0703 - 1.0753 it is more likely to fall further towards 1.0561 or 1.0461.

NZD-USD	Prefer a fall to 0.7087 or 0.7017. Then a correction to 0.7204 is anticipated. A clear break of 0.6924 is again bearish.

AUD-USD	Market should not go lower than 0.8859 - 0.8754. After this move down it should go up to 0.9041 - 0.9118 area.

EUR-JPY	It should try higher up to 130.1465 - 131.0273. Entry point 129.2657 or 128.5050. After this rise, a correction is expected.

EUR-CHF	Market should not go lower than 1.4929 - 1.4859. After this move down it should go up to 1.5046 - 1.5091 area.

EUR-GBP	Market should not go lower than 0.8866 - 0.8805. After this move down it should go up to 0.8965 - 0.9002 area.

EUR-CAD	Market should not go lower than 1.5120. After this move down it should go up to 1.5511 area.

EUR-NZD	It may meet resistance in 2.0162 - 2.0179 zone for a drift down to 2.0050 zone, after which bounce to 2.0291 is anticipated.

EUR-AUD	It is likely to fall towards 1.5962 - 1.5829 unless a corrective rally breaks the 1.6170 resistance. Stop above 1.6236 zone.

GBP-CHF	It looks more likely that it would rise to 1.7007 from 1.6768 or 1.6682. After which a downside move is expected.

GBP-JPY	Market should hold major support at 143.0290 before rising towards 147.4667 or even 149.1033 limit.

GBP-CAD	No comment!

GBP-AUD	Current rise seems to be over near 1.8217 or 1.8365 for a retracement towards 1.8069 - 1.7948 area.

CAD-JPY	Market should hold major support at 83.2687 before rising towards 85.5560 or even 86.3680 limit.

NZD-JPY	Market should hold major support at 63.1106 before rising towards 65.1347 or even 66.0423 limit.

AUD-JPY	Market should hold major support at 77.6876 before rising towards 81.8187 or even 83.1673 limit.

XAG-USD	One more dip to 17.1705 - 16.9657 is likely followed by a grind higher to 17.6757.

XAU-USD	Current fall is near an end of wave around 1090.6235 zone, a rally should then procede to above 1137.5536. Fall below 1069.3452 would cancel this scenario.

EUR/JPY Analysis - Friday 18 December 2009

2009-12-17T17:54:00.000-08:00

Flat correction down spiked to a low of 127.40 by the time I am writing this. As Nostromo indicates, we should expect a recovery now with the caveat that there is bearish potential for a fall to 125.72.

Although it cannot be seen from the screenshot below, the level mentioned above is circa the convergence of WS2 and MoS1 (125.70).

On the H4 chart, we can see where EJ briefly plunged and violated the support line.

RTFX TraderTip >> GBP-JPY Analysis - Friday 18 December 2009

2009-12-17T17:46:00.000-08:00

http://www.realtimeforex.fr/forums/forex-analysis-news/38975-rtfx-tradertip-gbp-jpy-analysis-friday-18-december-2009-a.html

RTFX TraderTip >> USD-JPY Analysis - Friday 18 December 2009

2009-12-17T17:45:00.000-08:00

http://www.realtimeforex.fr/forums/forex-analysis-news/38986-rtfx-tradertip-usd-jpy-analysis-friday-18-december-2009-a.html

EUR/JPY Analysis - Thursday 17 December 2009

2009-12-16T18:51:00.001-08:00

Flat correction down as per the weekly and monthly technical analysis underway as I write this.

Break of the support trendline (as see below) will confirm.

Chart below confirms WS1 128.10 as a good target should the support line fails.

Now, just go out there and make some dough!!!

RTFX TraderTip >> USD-JPY Analysis - Thursday 17 December 2009

2009-12-16T18:51:00.000-08:00

http://www.realtimeforex.fr/forums/forex-analysis-news/38707-rtfx-tradertip-usd-jpy-analysis-thursday-17-december-2009-a.html

RTFX TraderTip >> GBP-JPY Analysis - Thursday 17 December 2009

2009-12-16T18:50:00.000-08:00

http://www.realtimeforex.fr/forums/forex-analysis-news/38696-rtfx-tradertip-gbp-jpy-analysis-thursday-17-december-2009-a.html

RTFX TraderTip >> USD-JPY Analysis - Wednesday 16 December 2009

2009-12-15T18:00:00.001-08:00

http://www.realtimeforex.fr/forums/forex-analysis-news/38471-rtfx-tradertip-usd-jpy-analysis-wednesday-16-december-2009-a.html

RTFX TraderTip >> GBP-JPY Analysis - Wednesday 16 December 2009

2009-12-15T18:00:00.000-08:00

http://www.realtimeforex.fr/forums/forex-analysis-news/38460-rtfx-tradertip-gbp-jpy-analysis-wednesday-16-december-2009-a.html

EUR/JPY Analysis - Wednesday 16 December 2009

2009-12-15T17:48:00.000-08:00

Nostromo's daily technical analysis is now out of sync with the weekly & monthly view. Daily indicates flat correction up to 131.00 whilst the weekly and monthly indicates a flat correction down to 128.72-78 with warnings of bearish potential as far down as 125.78.

Per Mafia, daily bias is up. For as long price holds above DPP, flat correction up to convergence of WPP (131.17) and DR2 (131.32) looks good.

Just wanted to share the H4 view. EJ still "contained" unless we see a breakout of some key levels.

Happy pipping!